‘Price gouging’ a familiar, lame excuse for California’s expensive fuel

The California Energy Commission is reportedly probing “price gouging” by gas stations, as prices soar.

But “price gouging” is the oldest and lamest excuse for high gas prices in California — an excuse frequently used, and abused by Gavin Newsom.

He blamed “price gouging” in 2022, when he called a special legislative session to deal with high prices.

Legislators didn’t cut the gas tax, or suspend the state’s “Cap-and-Trade” (now “Cap-and-Invest”) climate change mandates.

Instead, they created a new “penalty” for windfall profits.

But when oil companies explained that the high cost of running a refinery in California meant that they might have to shut down altogether, the state suspended the penalty for five years.

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In 2024, Newsom called another special sessions of the legislature to pass a law requiring refineries to keep extra fuel on hand in case of big shifts in the global oil market.

He claimed the industry had continued to “lie” about price spikes. Without evidence, of course.

“Price gouging” isn’t really a thing.

No doubt there are some stations charging more than others. There always are, even when oil prices are low.

Which is why smart drivers choose alternatives.

There are so many gas stations — at least, before California drives them out of business — that any one station that charges substantially more than the others loses business quickly.

It’s a problem — with a free-market solution.

Sometimes there are reasons a particular station charges more. The last station before the freeway on-ramp; the only station in that one neighborhood; the station with the really good coffee; the station that offers full service, a relic of the past in California.

But mostly, gas stations charge higher prices when oil markets are tight.

That — and when politicians raise taxes, or impose new regulations on fuel blends; or pass new climate change restrictions that force refineries out of business,

California has abundant oil and gas resources. But the state has become increasingly hostile to drilling and exploration — onshore, as well as offshore.

The only real “price gouging” is at the DMV — where politicians have raised vehicle registration fees to absurd levels, along with raising our gas taxes.

Everyone understands that the war in Iran has raised gas prices substantially.

But California drivers had already paid much more than the national average.

Instead of looking for scapegoats, it’s time politicians and regulators started dealing with the real causes of the problem.